You can find me: Tuesday Aug 14th, 2012 At the Customer Service Experience Conference talking at 11:45 a.m. – 12:30 p.m. EST about How Strategic Social Customer Service Generates and Preserves Revenue and also at:
|8:00 a.m – 8:45 a.m||SD2: Breakfast With the Influencers Panel|
|2:45 p.m – 3:30 p.m||A204: CRM Solution Sessions|
Its been interesting to watch both the CRM and the Customer Service World change with the advent and adoption of social media. While many companies still are not there yet, many have taken the plunge. In the Social Customer Service talk, I’ll be presenting with Kathy Hermann. We work with clients to help them calculate the ROI of their social media initiatives. In particular we’ll look at a case study on how a larger wireless carrier improved the customer experience as well as saved revenue. Its a new concept to think about how Customer Service can save revenue.
The contact center has historically been thought of as a cost center. It really never was just that, but it did end up getting labeled that way. If you think about- the contact center and the experiences customers have- whether it’s self-service / online / with an agent – a customer’s impression of the company is based on that interaction. Having spent time in PR and Marketing – which I did as a strategic career move to truly understand those functional roles / challenges. What I observed is that customer’s tend not to get upset about a marketing message or a brand promise. Where the rubber meets the road is when Customer Service – generally the department that has to deliver on the PR/ Marketing promise- is where the issues come up. Brands & companies spending millions of dollars are creating a presence in the marketplace and then if Customer Service is not handled well, that brand equity is destroyed very quickly. Bottomline? Often all that money spent in PR and Marketing is wasted because you can’t sell to people who are mad. If PR and marketing’s purpose is to drive the front part of the marketing funnel- Awareness, Interest, Consideration… and convert leads to sales and purchase, then they need to make sure they are working hand-in-hand with Customer Service. Its not ok to deliver brand promises and not fulfill on them. It fractures the brand equity and it reduces sales.
Social Customer Service: Cost Reductions and Revenue Generation/ Preservation
What we found in working with the wireless company was in part was that strategic social Customer Service can generate and preserve revenue. To do that you need to start with objectives and strategy- i.e., you want to improve the customer’s experience – while reducing costs and generating/ saving revenue. And then you need to set-up a measurement program to baseline/ benchmark your “before” state and then measure after you’ve implemented at various points in time.
The end goal of measurement is not to collect a bunch of metrics but to gain actionable intelligence. ROI or return on investment is a numerical view of your strategy. Positive ROI means you will receive more than you are spending on the initiative. Negative ROI means that you need to go back and look at your strategy and determine if there is something you could do better.
Costs: Costs tend to fall in three buckets: People, Process and Technology. These are hard costs and tend to be easier to calculate! You can group people costs into salaries and training. Process costs tend to be oriented towards what are you changing about your business to make the initiative successful. This might be marketing dollars to market an online community. Technology costs depend on what you are implementing- the range can include: the technology itself- hardware and software, community website design, single sign-on, integration to contact center applications, such as CRM or marketing automation software, order management, etc… a community platform subscription fee, analytics and reporting.
Benefits: The benefits of the initiative can range from reducing costs to increasing revenue. This is generally where people have more trouble. The benefits can range from:
Steps to Setting Up Social Media Measurement Program
1. Gather thoughts on business goals: Talk with business stakeholders to find out what business goals they want to reach. For example: decrease customer service calls to the contact center or increase sales inquiries or conversions by 10% from social media sources within 3 months.
2. Set Goals For Social Media: Ask your team- why are we participating in social media? Try to get as specific as you can for the following questions. The more clear you are as to why you are doing social media, the more likely it is that you will drive a business goal:
Ebook: Social Media ROI Myths and Truths
Social Media ROI YouTube Videos:
Video 1: Building the Business Case for Social Media,
Video 2: ROI of Social Media,
Video 3: How Social Media Benefits the Whole Company
White Papers: Social Media ROI
Book on Monetizing Facebook:
Like My Stuff – How to Monetize Your Facebook Fans With Social Commerce & A Facebook Store
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